During the Marcos regime, the government issued several laws to collect levies/fees from the first sale of copra. This is to finance the so-called Vertical Integration Program in the Coconut Industry, the coconut farmers are meant to be the object of development. However the result is the other way around, thereby creating an industry monopoly controlled by the marcos cronies and benefited solely from the collection of levies for almost ten years.
The first law was RA 6260, enacted in 1971, an Act instituting a Coconut Investment Fund or COCOFUND and creating a Coconut Investment Company. This law authorized the collection of PhP 0.55/100kg of copra on the first sale or farmgate,prices. This attempts to collect levies for ten years, to finance various corporations and businesses purportedly to be owned by the coconut farmers.
Succeding laws that eventually imposed more levies and made them permanent:Presidencial Decree 276 or the Coconut Consumers Stabilization fund (CCSF)----- Imposed additional levy of PhP15.00/100 kg. Of Copra, again on the first sale, intended for sunsidies on the sale of coconut based products. Contrary to COCOFUND, CCSF collection did not issue reciepts.
presidential Decree 414, that amended PD 232 that created Philipppine coconut authority (PCA) ---this decree also expanded the coverage of CCSF to include investments, establishing of processing plants, research and extension services. It even increased to PhP 55/100 kg and later PhP 100/100 kg.
PD 755 that create the United Coconut Planters Bank (UCPB), where all CCSF collections were deposited, amazingly without interests.
PD 1468, amending PD 961 that created the Coconut Industry Code or the "new" PCA Charter. PD 1468 created the Coconut Industry Investment Fund (CIIF), which created more investments in the name of coconut farmers, but in reality, were owned and managed by close Marcos cronies, like Cojuangco, Lobregat, Enrile and others.
In real sense, the coconut farmers shouldered all levies that were collected, since it was deducted from the farmgate prices. It affected copra prices wherein during the period of collection reach to PhP0.50/kg. At farmgate. This resulted to extreme poverty of coconut farmers and the birth of strong opposition for the continuous levy collection.
In early 1980's, various coconut farmers organizations were organized to campaign for the stopping of collection. There were massive campaigns in Southern Tagalog, Bicol and Mindanao. Militant organizations were organinized like ALAMIN in Southern Tagalog, BCPAI in Bicol and AMIN in Mindanao. These actions bore fruit through the suspension of the levy collection in 1982.
After the EDSA People power in 1986, Pres. Aquino put all these levy funds and assets in sequestration through the Presidential Commission on Good Government (PCGG) and ordered an audit, which revealed that the amount is now a walloping Php100 billion. Cases were filed in courts, especially with the anti-graft court, the SANDIGANBAYAN. The most famous is Civil Case # 0033 ( People of the Republic of the Philipppines vs. Eduardo Cojuangco Jr. et.al.).
This particular case up to now, for fiffteen years, is still at the preliminary investigation and yet there are around 400 motions for Reconcideration filed with it by COCOFED and lawyers of Danding Cojuangco.
In 1990, coconut farmer leaders started to organize again themselves to campaign for the recovery of the coconut levy. One of this is the Kalipunan ng nga Maliliit na Magniniyog ng Pilipinas (KAMMPIL) which was formally organized as a national federation in October 1991. KAMMPIL initiated various information campaigns to drumbeat again the issue at the local and national level. This was simultaneously combined with petition signing addressed to the government, to resolve immediately the issue in favor to the real owner, the small coconut farmers and farmworkers.
This was the beginning where the issue of coconut levy was brought again at the national policy agenda. Various sector got interested also to support the struggle of the small coconut farmers especially non-government organizations, church people, professionals and other peasant organizations.
Coupled with the various issues in agrarian reform from share tenancy and land redistribution and low copra prices, these were the organizing issues used, that brought together small coconut farmers in forming their local KAMMPIL chapters.
Since the issue of coconut levy is not merely an economic issue but political as well, KAMMPIL tried to organize a broad alliance with other farmers' organizations to mount a much wider campaign, locally and nationally. In line with this were the Coconut Industry Reform Movement (COIR) was established followed by the Pambansang Koalisyon ng mga Samahang Magsasaka at Manggagawa sa Niyugan (PKSMMN). Both these coalitions focused their efforts to coconut levy recovery; KAMMPIL is both a member of the two coalitions. However in 1998, KAMMPIL resigned with COIR due to internal problems within the coalition.
In 1992, with the appointment of Gen, Virgilio David (Ret.) as the administrator of the Philippine Coconut Authority (PCA), the farmers found a new sincerely ally in the struggle for the coconut levy recovery. Administrator David used his position to wage a massive information campaign all over the country about the levy and urge the small coconut farmers to organize themselves and join the struggle. He became also the farmers' connection to Pres. Ramos since the coconut farmers are asking Pre. Ramos to issue an executive order that will declare the levy as a Farmers' Public Trust Fund.
Along with this, farmers are also clamoring genuine farmers' representation in PCA and other government agencies, two farmer leaders from COIR and PKSMMN were appointed in the PCA Governing Board. Ka Muloy Tapayan, KAMMPIL Secretary-General was one. This was an initial victory among the struggle farmers, where the government recognized their organizations.
In 1996, a 6,000 strong mobilization was launched in front of the Supreme Court urging the High Court to expedite other coconut levy cases at their disposal. However the Supreme Court cannot act on the request since the farmers organization are not party to the case. The said mobilization proceeded at Malacaņang Palace to dramatize their demand to Pres. Ramos. Pres. Ramos promised to issue an Executive Order. In September, 1996 Pres. Ramos issued EO 277 which dclared coco levy fund as "public in nature" and now can be used for the rehabilitation of the coconut industry. However, EO 277 has no clear implementing guidelines that put the said EO as a "paper tiger". To again appease the growing discontent and clamor for the recovery of levy, Pres. Ramos issued again Executive Order 481 on May 1,1998, just two weeks before the Presidential Elections. Many believed that this was made just to get the support of the small coconut farmers to the candidacy of Jose de Venecia, Ramos' annointed Presidential candidate. However, De Venecia lost to Pres. Estrada.
With the ascension to power of Estrada, there were big doubts if he will act on the coconut levy favoring the small coconut farmers. Danding Cojuangco is the patron of Estrada and many believed that Estrada will no go against the will of Cojuangco.
True to some extent, immediately after, Danding Cojuangco regained his position as the Chairman of the San Miguel Corporation (SMC). On the very date of the first SMC Board Meeting, KAMMPIL mounted a picket in front of San Miguel Corporation in Ortigas, Mandaluyong City, to question the come back of Danding as a start of paying back political favor to Danding. This KAMMPIL action was highlighted in almost all-major newspapers in the country and ignited again the debate on the coconut levy issue.
This was followed by series of media exposures and actions, which put Estrada in bad light. Estrada was forced to issue a policy statement that he will work for the recovery of the coconut levy and said, " Every single cent of the coconut levy will be given back to the coconut farmers". Even Danding issued a statement that his only interest in San Miguel is only the 20% not the 27% shares, which further said that belongs to the coconut farmers.
With this statement, it gave an opportunity for farmer organizations and their allies to press further the demand. Estrada delegated secretary Boy Morales of DAR to talk with the farmers organizations and to come up concrete proposals. These consultations resulted to several drafts of Executive Orders, purportedly to resolve the 27% share in SMC. These were intense debates on the contents of the proposed EO's and even polarized the ranks of the farmer sector and support NGO's.
The contentious issues surrounding the coconut levy is the nature of funds whether "public" or "private", who will audit the funds, which bank is the depository, how many farmers will sit in the Coconut Trust Fund Committee, the 20% share of COCOFED from the funds and the COCOFED seat to the committee.
There were around 40 drafts EO's that circulated and were all submitted to Malacaņang and Pres. Estrada promised to sign a consolidated one. His first promise was in March 2000 in Davao, however it did not pursue due to the strong lobby of Danding and Lobregat of COCOFED. There were so many promises of signing but did not materialize until the issue of "jueteng" payola and tobacco excise tax came into the picture. These issues dampen the coconut levy recovery and Estrada was pre-occupied with it.
To the surprise of many, Pres. Estrada signed Executive Order 313 on November 8, 2001 to free the 27% SMC shares from sequestration and established a Perpetual Coconut Trust Fund and proir to that issued Executive Order 312 on November 3, 2000 to put up a copra price subsidy.
Executive Order 313 ordered the lifting of sequestration of the 27% share os SMC shares which believed to reach PhP 50 billion and be turned-over to the newly created Coconut Trust Fund Committee for the various programs and projects that will benefit the small coconut farmers and farmworkers and coconut industry. Twenty percent of the funds (interest earning of the face value) will go to COCOFED, 30% to the other farmers organizations, 30% to government coconut industry programs and projects, 17% as flow back to the capital and 3% as administrative cost of the committee.
Some farmers organizations and coalitions and non-government organizations, especially COIR, PKSMMN, and PPI questioned the content and intent of EO 313 since it did not categorically and explicitely declared the fund as public, COA can only be requested to audit the funds, no term limits for the members of the committee. They said that President Estrada signed the EO just to appease the growing discontent of the small coconut farmers to his leadership.
However, several broad coconut farmers organizations like the National Federation of Small Coconut Farmers Organizations (NFSCFO), Kalipunan ng Maliliit na Magniniyog ng Pilipinas (KAMMPIL), Nagkakaisang Ugnayan ng maliliit na Magsasaka at Manggagawa sa Niyugan (NIUGAN) and COCOFED whose leaders were appointed as members of the Committee supported the immediate implementation of EO 313.
These groups supported EO 312 and 313 for the reason that it will benefit the small coconut farmers who are suffering from low copra prices and extreme poverty. However, it will not abandon the struggle to recover the rest of the Coconut Levy funds and assets believed to be Php 250 billion, still in sequestration and the Sandiganbayan has yet to decide whether the funds are really ill-gotten wealth.
However, EO 312 and 313 were outrun by events, it were rescinded by Pres. Arroyo after the EDSA II uprising. Despite the suspension, no new Executive Order was issued. This put again the issue, back to square one.
The Arroyo government is interested again with the coconut levy for varied reasons. One, she is considering the demands of the coconut farmers and second, they are eyeing the big amount to fund projects and programs she promised during the State of the Nation Address (SONA). Even Speaker De Venecia, publicly stated that he is planning to tap the 27% SMC shares as fund source for the various projects and programs.
This is a serious problem if not guarded by the small coconut farmers. They will use the money not only for the benefits of the small coconut farmers and coconut industry but for other projects as well. This is treacherous move by the government to dupe again the farmers who paid the coconut levy.
Recently, KAMMPIL,PKSMMN, NIUGAN, NSCFO, KASAMA-KA and other farmers organizations drafted an Executive Order for Pres. Arroyo to sign. The content of the said draft is basically the same with EO 313 with some ammendments like:
Sharing (25% for PCA, 40% for small coconut farmers, 20% for COCOFED, 5% for Administration and 15% as capital flowback)
Audit, to creat a special Audit Committtee composed of representative from Dept. Of Finance, Bangko Sentral ng Pilipinas, Commission on Audit and representatives from 2 respected private auditing firms.
Composition of the Trust Fund Committee (President as chair, 3 coconut farmers, COCOFED, PCA, PCGG, and CIIF. Vice-chairperson coming from the small coconut farmers representatives.
Repealing Clause is general, instead of specifying EO 277,481 and 313.
Creation of Local Coconut Development Councils.
This draft EO was subjected to discussion and debates during the recently held National Coconut Farmers Furom.
However, COIR and PPI also drafted an EO, which is almost the same with the new draft but with the specific amendments on sharing and representation.
These organizations are planning to mount series of campaigns and pressure actions to urge Pres. Arroyo to sign immediately the Executive Order.
